Culp is likely to “more candidly and quickly identify how bad things may be.”Ĭulp built an impressive track record while leading Danaher between 20. “GE should be commended for selecting a credible, seasoned GE outsider,” Cowen analyst Gautam Khanna wrote to clients. “Unwinding 15 years of bad decisions will require courage,” but Davis added: “I wouldn’t want to bet against Larry.”īy bringing in fresh blood, GE is betting that it will be able to accelerate a turnaround plan started under John Flannery, a 30-year veteran of the company who was unceremoniously ousted as CEO to make room for Culp. “GE has been like watching a slow (but fatal) train wreck,” Scott Davis, lead analyst at Melius Research, wrote to clients on Monday. GE, a company that prides itself on management excellence, is so desperate that for the first time in its 126-year history it is being led by an outsider. Nearly half a trillion dollars has evaporated from GE’s market value over the past 18 years.
The iconic maker of light bulbs, MRI machines and jet engines is bleeding badly from poorly timed deals, needless complexity in its corporate structure and mounting debt. GE’s beaten-down share price spiked 10%.Ĭulp, who became CEO of industrial manufacturer Danaher at just 37, faces a monumental task in restoring GE to greatness. He received a hero’s welcome from Wall Street on Monday after suddenly being installed as GE’s new boss. Larry Culp, 55, is a proven leader known for his hands-on approach. General Electric is turning to an outsider to clean up a mess that took decades to create.
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